MANGEMENT DISCUSSION AND ANALYSIS REPORT Product SHIVALIK RASAYAN LIMITED continues to be the manufacturer of Dimethoate Technical and Malathion Technical in India. Both the products are old generic products and have limited demand. Dimethoate Technical Sales of Dimethoate Technical have been increased from 1365.00 MT to 1429.20 MT. The turnover has gone up from Rs.39.84 Crores to Rs.46.40 Crores. This is because of the increase in the prices of raw material as well as of sales price. Malathion Technical The company did not make Malathion Technical during financial year 2014-15. Opportunities & challenges The import from China remains major threat for Dimethoate Technical. The usages of Dimethoate Technical is more or less same as compare to last year. The management is considering diversifying the activities of the company in term to include more agro chemicals into its fold. Some new registrations are also being applied to the Central Insecticides Board. Financial Review The demand for Dimethoate Technical was good and company could achieve the higher turnover because of its low manufacturing cost in comparison to Chinese product. The management expects to continue the same scenario during the year subject to the normal monsoon. Company has been regular in meeting its obligations towards payment to regulatories and other statutory payment. Internal Control Systems and their Adequacy The Company has an adequate system of internal control relating to purchase of stores, raw materials including components, plant & machinery, equipment and other similar assets and for the sale of goods commensurate with the size of the Company and nature of its business. The Company also has Internal Control System for speedy compilation of accounts and Management Information Reports and to comply with applicable laws and regulations. The Company has an effective Budgetary Control System. The Management reviews the actual performance with reference to budgets periodically. The Company has a well-defined organization structure, authority levels and internal rules and regulations for conducting business transactions. The Company has already formed an Audit Committee. Audit Committee ensures proper compliance with the provisions of the listing Agreement with Stock Exchanges, Companies Act, reviews the adequacy and effectiveness of the internal control environment and monitors implementation of internal audit recommendations. Besides the above, Audit Committee is actively engaged in overseeing financial disclosures and in reviewing your Company's risk management policies. Environment, Occupational Health & Safety Your Company is committed to conducting its operations with due regard to the environment and providing a safe and healthy workplace for employees. The collective endeavor of your Company's employees at all levels is directed towards sustaining and continuously improving standards of environment, occupational health and safety in a bid to attain and exceed international benchmarks. for and on behalf of the Board of Directors Sd/- RAHUL BISHNOI Chairman DIN : 00317960 Place : New Delhi Dated : 2nd Sept, 2015 |